Less than 1 year in operation, Logivan – a startup named “Uber truck” of Vietnam has quickly attracted investment capital from VinaCapital and 2 foreign funds.
Logivan – Vietnam ‘s “Uber truck” technology company announced it had successfully called for $ 1.75 million from Ethos Partners, Insignia Venture Partners and VinaCapital Ventures.
With this investment, CEO Linh Pham said Logivan will expand its services in Ho Chi Minh City. HCM, Hanoi, Hai Phong and Da Nang. At the same time, it will upgrade products to serve large logistics companies and facilitate transparency in truck tracking and management.
“We look forward to working with talented young people to solve the major challenges of logistics and bring greater efficiency to Vietnam’s trucking industry,” said Linh Pham CEO.
Founded in September 2017, Logivan is a technology platform that directly connects goods owners and owners. This solution helps businesses search and manage online trucks, connect a network of thousands of trucks at competitive prices.
Logivan’s idea was formed when CEO Linh Pham realized that the number of empty trucks was coming back, this number could account for 70%. Logivan was born as a technology solution to solve this problem.
With this CEO, Logivan wants to help transport companies, freight forwarders (logistics and forwarder) to place trucks more quickly and conveniently. Instead of taking the time-consuming effort to ask each of the transport partners today, logistics companies and forwarders can log on Logivan so that appropriate truck owners can contact them immediately.
In addition, Logivan also contributes to reducing the number of empty trucks running on the road, reducing congestion, and reducing dust and pollution. As a result, Vietnam can become more attractive for companies that want to locate production in Southeast Asia.
“Other logistics apps on the market today such as Ahamove, Grab Express… often focus on the last mile delivery segment – the last step in the supply chain when packing to customers.
And Logivan focused on the first & middle mile delivery segment, the upper steps of the supply chain, when goods were circulated among manufacturers, distributed to retailers. Therefore, Logivan’s model is B2B (Business to Business) and Logivan’s customers are companies ”, Linh analyzed.
Regarding the Vietnam road transport market, Logivan said that the scale of 2017 reached about 9 billion USD with one billion tons of goods, in which truck vehicles accounted for more than one million vehicles and the growth rate was Market average reached 9.5%.
Therefore, this is a fertile land for start-up companies in the field of intermediate connections to find opportunities.
Since its launch, Logivan has connected more than 6,000 truck drivers. Recently, “Uber truck” is also recognized as the “Best Startup Company” in the PITCH 2018 at the 2018 RISE, the Asian Summit technology conference.
Kuok Meng Xiong, CEO of Ethos Partners said: “Logivan is in a special position and is ready to make a breakthrough for Vietnam’s transport industry. We see very similar characteristics that make other platforms successful: the market is fragmented on both sides of the supply and demand, the car ownership rate and the high redundancy in the system. We believe that Logivan benefits from Ethos’ practices for its companies.
Tran Nhat Khanh, VinaCapital Technology Investment Manager commented: “We are happy to work with Linh and Logivan’s team. We fully support their vision of a better future for the regional logistics industry. We believe in the founder’s ability to take the company to the next level of growth by turning current market challenges into opportunities to embrace. ”
In April this year, Logivan successfully called for $ 600,000 from investment fund Insignia Ventures Partners located in Singapore. Previously, in November 2017, this startup won the UberEXCHANGE startup competition, winning a ticket to Silicon Valley to meet with experts, senior advisers and reputable investment funds.